Loss of rent insurance
Loss of rent insurance

The following Property practice note provides comprehensive and up to date legal information covering:

  • Loss of rent insurance
  • Tenant’s policy
  • Rent review
  • ‘Break clauses’

Usually a lease provides that in the event of damage or destruction, such that the tenant is unable to occupy or trade from the property or access it, the rent or a proportion of it is suspended.

Therefore, the landlord should insure against loss of rent to protect against any loss of income while the rent is suspended. The landlord should ensure that the loss of rent insurance extends to any additional payments, such as service charge, which are also suspended.

The period during which loss of rent should be insured should be a considered and reasonable estimate by the landlord (with specialist advice) of the time that it would take to demolish, prepare plans and specifications, obtain the necessary consents (including planning permission) and

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